The Australian dollar's recent resilience in the face of headwinds in international markets has seen analysts lift their forecasts for the currency for this year and in 2015.

The local currency has traded within the range of US89¢ to US91¢ over the past few weeks despite bouts of risk aversion in markets about the ongoing crisis in Ukraine, and as China showed signs of financial stress.

The dollar rose to its year's high early on Wednesday, fetching US91.38¢ as risk sentiment improved amid easing tensions over Crimea. It was fetching 91.16¢ in late trade.

The median forecasts for the Australian dollar in the second, third and fourth quarters of this year have increased by US1¢ to US88¢, US87¢ and US86¢ respectively since February, according to data from Bloomberg.

Advertisement

The 2015 outlook has also rose, with median forecasts at US86¢ instead of US84¢ a month ago, the data showed.

Westpac raised its forecasts for the Australian dollar earlier this week when chief economist Bill Evans said the bank was no longer tipping any interest rate cuts this year. Mr Evans now expects the cash rate to remain at 2.5 per cent this year.

Westpac expects the dollar to trade at US88¢ at the end of this year, a US2¢ lift from its earlier forecast. The bank also lifted its June 2015 forecast from US85¢ to US87¢.

Currency strategists said the local currency is likely to gradually weaken this year as the US Federal Reserve winds back its unprecedented stimulus program, which boosted risk assets such as the Australian dollar.

Even so, Westpac's senior currency strategist Sean Callow said his bank expected Australia's improving trade position over the next two years to boost the dollar. The bank tips the currency to trade at US91¢ by end-2015.

"What we have been keen to argue is how much the trade position is likely to improve over the next year. We are already running trade surpluses," Mr Callow said. The trade balance is set to improve as mining exports ramp up.

"By 2016, the overall current account position will approach balance. So that's a very strong positive for the Aussie further out.

"The key point is that it's not just a steady decline until further notice. "

Analysts said the RBA's shift to a neutral monetary policy stance in February has been a key factor in the dollar's recent resilience .

At the same time, while the currency has been seen as a proxy for risk, its muted reaction to recent financial stress in China, such as the reported collapse of a property developer and the default of a solar cell maker, could mean negative news has already been priced in to the dollar's current levels.

Meanwhile, the US dollar has been weighed down by weaker data, which analysts said could be weather-affected. The Australian dollar is also believed to have partly benefited from "reserve recycling", where central banks change the currencies they hold, Commonwealth Bank of Australia currency strategist Peter Dragicevich said.